With the increasing no. of frauds, like every bank Fidelity bank has also started the policy of verification of the checks deposited in the bank for encashment. Check verification is a process of ascertaining the identification of the drawer (who is issuing the check) and the drawee (in whose name the check is issued). Fidelity bank uses the automated route to verify the checks electronically through the “Routing Tool”. If it is still not satisfied with the information, the bank can call you for producing the required documents.
What is a Routing Tool and how does it verify checks?
A routing tool is a digital gateway for logging in to your bank account by entering your username and password into a web browser for accessing the routing numbers of your checks, and for knowing the status of your checks whether they are verified or not. A routing number is a 9-digit code that is written on the bottom left of your check or you can also find it through a routing tool. Banks use this number to identify the money source of the check’s issuer by contacting the bank (in which the issuer has his bank account). If the issuing bank confirms that the person & his account is valid, then the check will be cleared for encashment.
Steps to verify the check through Routing Tools?
With the advent of technology, checks can also be verified with a few clicks on your PC or laptop. No need to stand in long queues at the bank like before. Follow these simple steps to verify your check: –
Call on the phone no. 405-416-2222 (for headquarters office). Contact no. may vary based on your location or state of the branch in which you have an account. Make sure to be ready with the copy of the check (that needs to be verified) in front of you. Enter the routing no. 122106374 (vary for different branch locations) through your phone keypad. You can also find routing no. in the database of U. S. banks available in a routing tool. After the confirmation is received from the financial institution (usually the other bank), the status of your check will be made available to you.
Why does the need for check verification arise?
To prevent Frauds & Scams – Many cases of fraudsters, issuing fake checks intentionally to their suppliers to avoid paying the money, are being heard these days. To protect innocent people from being caught in the trap of these types of fraud, verification is a must.
To prevent Money Laundering – Siphoning of funds is common these days by big businesses & their owners. The practice of turning black money (money earned through illegal sources) into the white seems to be an easy task for them. This way the economic growth is hindered due to the tax evasion practiced by these large organizations.
To Maintain its Goodwill in the Market – The bank has to suffer huge losses in these situations, especially since there would be a negative impact on the bank’s image. So, to save its image from being harmed, the banks started adopting this policy of check verification.
To avoid any risk of loss bearing – In case of any fraud occurred, the bank would be held responsible for that as it failed in doing its duty diligently. To the avoidance of the penalties, the bank has to be fully alert.
Conclusion
Fidelity bank used to verify checks from many decades ago through conventional means but, it too has updated itself like every other bank, to adopt the verification of checks procedure digitally. With the increasing no. of scams, it’s the need of the hour to check the legitimacy of the source of the money of the payee and the payer.
Q1. How much time does it take to verify a check?
Usually, it takes 2-3 business days in the whole process of transferring money to your bank account after the clearance of your check. But, for government checks, the verification can be made faster in 24 hours.
Q2. What should I do if my check is rejected or the bank is unable to verify it?
You will receive a call from your bank informing you about the rejection of your check and asking you to produce the necessary documents required for your identification. You have to be ready with the valid ID card having your photograph and show it to the bank as soon as possible.
